Tenaris has successfully finalized the purchase of Mattr's Pipe Coating Division, previously known as Shawcor, for a total of $182.6 million. This figure includes working capital and $16.9 million in cash.
Announced back on August 14, 2023, the acquisition has now received the green light from regulatory bodies in both Mexico and Norway.
Tenaris now adds nine new facilities located in Canada, Mexico, Norway, Indonesia, the UAE, and the USA, along with multiple mobile concrete plants to its operations. Additionally, it gains access to research and development centers in Canada and Norway, as well as a broad range of intellectual property and products.
Michele Della Briotta, Tenaris's President for Europe, who is set to manage the new Coating Profit Center, expressed enthusiasm about the acquisition. He highlighted that it would lead to a portfolio of products, innovative services, and coating technologies. It will provide highly efficient and effective solutions to meet customer needs.
This purchase especially strengthens their ability to offer complete solutions for concrete weight, anti-corrosion, and flow assurance coatings, useful for pipelines on land and at sea.
Tenaris plans to integrate these new facilities, ensuring they meet the company's high global standards in quality, health, safety, and environmental practices.
Mattr's Pipe Coating Division
Mattr's Pipe Coating Division, known as Pipeline Performance Group (PPG), has recently been involved in several significant projects, collectively valued at over $200 million.
These include a commitment from Saipem for a deep-water development project in South America, where PPG will provide thermal insulation and anti-corrosion coating services. The project is expected to commence in the fourth quarter of 2023.
PPG has received two binding letters of intent and two purchase orders for insulation coating services on four Brazilian offshore projects. One of these projects will feature Shawcor's proprietary ULTRA technology, marking its second deployment on offshore Brazilian pipelines. Coating activities for these projects are anticipated to conclude by the end of 2024.
PPG's Vice President & General Manager - Western Hemisphere South, Fernando Ulecia, emphasized the division's reputation in South America for delivering high-value, technically advanced, and quality pipe coating services. The division's performance on various critical projects in the region showcases their product quality and execution capabilities, especially in challenging environments. Kevin Reizer, Group President of PPG, noted that these commitments indicate a surge in offshore activities, particularly in deep-water projects. PPG's global network of coating and insulation facilities is strategically positioned to support this increase in activities, with project visibility extending well into 2024.
In addition to these developments, Shawcor completed the sale of its Socotherm Americas subsidiary in Argentina to Patagonia Shale Services. Since 1989, Socotherm Americas has been providing external and internal anti-corrosion coating and thermal insulation coating to the Argentine and regional pipeline and oilfield tubular markets
About Tenaris
Tenaris is a global leader in the manufacture of pipes and associated services for the energy sector and other industrial applications. Operating across 16 countries, the company's integrated manufacturing system includes steelmaking, pipe rolling and forming, heat treatment, threading, and finishing.
In terms of financials and global presence, Tenaris reported annual net sales of $11.8 billion for the year 2022. It operates in 23 countries through its seamless and welded manufacturing facilities, service centers, and R&D centers, maintaining the highest standards of safety, quality, and performance. The company employs around 25,000 people worldwide and has a manufacturing capacity of 7.8 million tons of seamless and welded steel pipe.
